https://www.avient.com/sites/default/files/2024-01/SmartHeat RHC Application Snapshot.pdf
PACKAGING CONVERTER R P E T W A T E R B O T T L E S • Provided the only reheat additive with APR Critical Guidance & Bottle-to-Bottle Recognition • Allowed increased use of rPET with no negative impact to performance or aesthetics • Enabled preforms to heat more quickly to improve cycle times and reduce energy usage • Set up onsite dosing equipment for customer at multiple locations and provided technical support nationally ColorMatrix™ SmartHeat™ RHC WHY AVIENT? https://www.avient.com/products/polymer-additives/reheat-additives-pet/colormatrix-smartheat-rhc
https://www.avient.com/sites/default/files/2020-07/woonkeatmoh_0.pdf
WOON KEAT MOH Senior Vice President, President Color, Additives & Inks–Americas and Asia Woon Keat Moh (“Moh”) is senior vice president, president, Color, Additives & Inks, Americas and Asia regions for Avient Corporation, a premier provider of specialized and sustainable material solutions and services. This has included Sales Director for Avient’s Color and Additives segment in Asia and General Manager of Engineered Materials Asia.
https://www.avient.com/sites/default/files/2020-08/maxxam-polyolefins-formualtions-case-study.pdf
Avient engineered a new customized formulation for the part, which provided both the processability required for extremely short cycle injection-compression molding, as well as including an additive to stabilize the material when in contact with copper. This additive protects the door from cracking as it comes into contact with copper particles over time. In addition, the new material also provides anti-static properties and low VOC levels, which helps the system adhere to regulations such as the Vehicle Interior Air Quality (VIAQ) standard.
https://www.avient.com/sites/default/files/2020-08/silcosperse-ec-product-bulletin.pdf
PRODUCT BULLETIN 1.00E+00 1.00E+02 1.00E+04 1.00E+06 1.00E+08 1.00E+10 1.00E+12 1.00E+14 1.00E+16 1.00E+18 0 10 20 30 40 50 60 70 R e s is it iv it y / O h m Silcosperseä EC dosing percentage (%) CB HCR SWCNT HCR SWCNT LSR MWCNT HCR aceSurface Resistivity Silcosperse™ EC Electrically Conductive Additive Dispersions Silcosperse™ EC Electrically Conductive additive dispersions provide varying levels of electrical conductivity to silicone material. These functional additives allow silicone, which is normally an electrical insulator, to become an anti-static, static dissipative or fully conductive material, making it suitable for a variety of uses. CB is also available as a European food regulation compliant grade. 0 10 20 30 40 50 60 70 1.00E+18 1.00E+16 1.00E+14 1.00E+12 1.00E+10 1.00E+08 1.00E+06 1.00E+04 1.00E+02 1.00E+00 INSULATIVE ANTISTAT DISSIPATIVE CONDUCTIVE KEY CHARACTERISTICS • Delivers a range of properties from anti-static through conductive • Achieves greater conductivity levels with lower loadings in single- and multi-wall nanotubes • Anti-static performance available at lower doses • Dark color options, such as browns, blues or reds, available at lower dosages in single-wall nanotubes • Suitable for peroxide- or platinum-cured silicone formulations MARKETS AND APPLICATIONS Silcosperse EC Electrically Conductive additive dispersions are found in a variety of markets, including transportation, energy, electrical & electronics, and the films & coatings industry.
https://www.avient.com/sites/default/files/2020-10/fluoropolymer-cable-case-study-.pdf
CABLE MANUFACTURER REBOUNDS WITH SPECIALIZED COLOR AND ADDITIVE MASTERBATCHES CASE STUDY: COLORANT CHROMATICS™ Ch all en ge A cc ep te d. Finding suppliers of fluoropolymer color and additive masterbatches able to meet its standards has not always been easy. With the help of Avient’s color design service, the company was able to develop new product lines that paved the way for additional revenue from new and existing customers.
https://www.avient.com/sites/default/files/resources/PolyOne%2520Investor%2520Day%2520Presentation%2520NonGAAP%2520Reconciliation%2520-%2520May%252016%252C%25202012.pdf
Platform operating income mix percentage 2005Y 2008Y 2011Y Global Specialty Engineered Materials $ 0.4 $ 17.6 $ 45.9 Global Color, Additives and Inks 4.3 28.1 43.4 Specialty Platform $ 4.7 $ 45.7 $ 89.3 Performance Products and Solutions 75.7 31.3 62.4 Distribution 19.5 28.1 56.0 SunBelt Joint Venture 91.9 28.6 5.0 Corporate (51.5) (425.1) 20.3 Operating income (loss) GAAP $ 140.3 $ (291.4) $ 233.0 Less: Corporate operating expense (income) 51.5 425.1 (20.3) Operating income excluding Corporate $ 191.8 $ 133.7 $ 212.7 Specialty platform operating mix percentage 2% 34% 42% Pro forma platform operating income mix percentage 2007 Pro forma 2011Y Specialty Platform $ 30.6 $ 89.3 Pro forma ColorMatrix - 27.7 Specialty Platform pro forma ColorMatrix $ 30.6 $ 117.0 Performance Products and Solutions 65.8 62.4 Distribution 22.1 56.0 SunBelt Joint Venture 34.8 5.0 Corporate (73.3) 20.3 Operating income pro forma ColorMatrix $ 80.0 $ 260.7 Less: Corporate and SunBelt operating income 73.3 (25.3) Operating income excluding Corporate operating income $ 153.3 $ 235.4 Specialty platform operating mix percentage 20% 50% Adjusted EPS 2006Y 2007Y 2008Y 2009Y 2010Y 2011Y Net Income $ 130.9 $ 40.9 $ (417.0) $ 106.7 $ 162.6 $ 172.6 SunBelt and OxyVinyls equity earnings, after tax (68.5) (26.1) (20.8) (19.0) (14.7) (3.7) Special items, after tax (21.2) 41.4 310.0 (31.0) 15.8 (30.5) Tax adjustments (30.0) (30.7) 147.2 (44.9) (88.3) (42.3) Adjusted net income $ 11.2 $ 25.5 $ 19.4 $ 11.8 $ 75.4 $ 96.1 Diluted shares 92.8 93.1 92.7 93.4 96.0 94.3 Adjusted EPS $ 0.12 $ 0.27 $ 0.21 $ 0.13 $ 0.79 $ 1.02 Adjusted EPS Q1 2011 Q1 2012 Net Income $ 110.2 $ 20.2 SunBelt equity earnings, after tax (3.7) - Special items, after tax (79.8) 6.1 Tax adjustments (1.5) 0.1 Adjusted net income $ 25.2 $ 26.4 Diluted shares 96.4 90.7 Adjusted EPS $ 0.26 $ 0.29 Platform sales and operating income (OI) 2005 2006 2007 2008 2009 2010 2011 Global Specialty Engineered Materials Sales $ 282.5 $ 345.3 $ 384.4 $ 514.0 $ 402.9 $ 517.4 $ 575.1 Global Color, Additives and Inks Sales 503.7 531.8 560.5 554.3 459.8 527.4 544.6 Specialty Platform Sales $ 786.2 $ 877.1 $ 944.9 $ 1,068.3 $ 862.7 $ 1,044.8 $ 1,119.7 Performance Products and Solutions Sales 1,136.3 1,166.2 1,086.8 1,001.4 667.7 776.3 865.4 PolyOne Distribution Sales 679.2 732.8 744.3 796.7 625.1 911.9 996.5 Corporate and Eliminations (151.1) (153.7) (133.3) (127.7) (94.8) (111.1) (118.1) Total Sales $ 2,450.6 $ 2,622.4 $ 2,642.7 $ 2,738.7 $ 2,060.7 $ 2,621.9 $ 2,863.5 Pro forma ColorMatrix Sales 196.0 Total sales pro forma ColorMatrix $ 3,059.5 Global Specialty Engineered Materials OI $ 0.4 $ 3.9 $ 4.9 $ 17.6 $ 20.6 $ 49.7 $ 45.9 Global Color, Additives and Inks OI 4.3 8.9 25.7 28.1 25.2 37.7 43.4 Specialty Platform OI $ 4.7 $ 12.8 $ 30.6 $ 45.7 $ 45.8 $ 87.4 $ 89.3 Performance Products and Solutions OI 75.7 64.2 65.8 31.3 33.1 54.0 62.4 PolyOne Distribution OI 19.5 19.2 22.1 28.1 24.8 42.0 56.0 Sunbelt Joint Venture OI 91.9 102.9 34.8 28.6 25.5 18.9 5.0 Corporate and eliminations (21.8) (4.6) (25.5) (28.9) (40.8) (32.5) (26.4) Special items (29.7) 39.1 (47.8) (396.2) 48.7 4.8 46.7 Operating income (loss) GAAP $ 140.3 $ 233.6 $ 80.0 $ (291.4) $ 137.1 $ 174.6 $ 233.0 Sunbelt equity income (72.5) (107.0) (40.8) (32.5) (29.7) (23.1) (5.7) Special items 29.7 (39.1) 47.8 396.2 (48.7) (4.8) (46.7) Operating income adjusted $ 97.5 $ 87.5 $ 87.0 $ 72.3 $ 58.7 $ 146.7 $ 180.6 Operating income pro forma ColorMatrix 27.7 Operating income adjusted pro forma ColorMatrix $ 208.3 Global Specialty Engineered Materials - OI as a percentage of sales 0.1% 1.1% 1.3% 3.4% 5.1% 9.6% 8.0% Global Color, Additives and Inks - OI as a percentage of sales 0.9% 1.7% 4.6% 5.1% 5.5% 7.1% 8.0% Specialty platform OI as a percentage of sales 0.6% 1.5% 3.2% 4.3% 5.3% 8.4% 8.0% Specialty platform OI as a percentage of sales - pro forma ColorMatrix 8.9% Global Color, Additives and Inks OI as a percentage of sales – pro forma ColorMatrix 9.6% PP&S operating OI as a percentage of sales 6.7% 5.5% 6.1% 3.1% 5.0% 7.0% 7.2% Distribution OI as a percentage of sales 2.9% 2.6% 3.0% 3.5% 4.0% 4.6% 5.6% PolyOne OI adjusted, as a percentage of sales 4.0% 3.3% 3.3% 2.6% 2.8% 5.6% 6.3% PolyOne OI adjusted, pro forma for ColorMatrix, as a percent of sales 6.8% Operating income (OI) Q1 2011 Q1 2012 Global Specialty Engineered Materials OI $ 14.0 $ 11.8 Global Color, Additives and Inks OI 11.2 17.3 Specialty Platform OI $ 25.2 $ 29.1 Performance Products and Solutions OI 14.3 17.8 PolyOne Distribution OI 14.7 16.7 Corporate and eliminations (1.6) (10.2) Special items 127.2 (8.5) Operating income (loss) GAAP $ 179.8 $ 44.9 Research and Development (R&D) – Pro forma ColorMatrix 2011 PolyOne R&D $ 36.9 ColorMatrix R&D 3.6 Pro forma R&D $ 40.5 Gross Margin as a percentage of Sales 2006 2011 2011 Pro forma ColorMatrix Specialty platform sales $ 877.1 $ 1,119.7 $ 1,315.7 Specialty platform gross margin 125.2 263.4 345.9 Specialty platform gross margin percentage 14.3 % 23.5 % 26.3 % Average Debt Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Average PolyOne Debt $ 452.9 $ 432.9 $ 432.9 $ 432.9 $ 707.0 n/a Pro forma ColorMatrix 274.1 274.1 274.1 274.1 - n/a Total Debt $ 727.0 $ 707.0 $ 707.0 $ 707.0 $ 707.0 $ 711.0 Average Equity Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Average PolyOne $ 516.0 $ 615.2 $ 629.6 $ 608.5 $ 588.3 $ 591.5
https://www.avient.com/sites/default/files/2021-06/avient-ir-presentation-may-2021-w-non-gaap-recs.pdf
There are significant revenue opportunities generated from the combined color and additive technology strengths of the two legacy companies. In addition, the cross- selling opportunities that leverage Avient’s Engineered Materials and Distribution segments will identify and deliver additional growth. Whether an additional line at an existing manufacturing plant, or a new facility in a growing region, we ramp-up quickly and cost-efficiently. 26 Capex / Revenue 2021E (%) AV I E N T I S A SS E T L I G H T Avient Specialty Formulators Other Chemical/Specialty Companies 2 3 2 2 2 3 3 4 3 3 3 4 4 5 5 5 6 7 7 8 24 A vi e n t A vi e n t (E xc l.
https://www.avient.com/sites/default/files/2023-09/Avient Sustainability Day 2023 - Website %289.19%29.pdf
Packaging and Packaging Waste Directive) RECYCLE SOLUTIONS Sources: UN Environment Programme; Deloitte; McKinsey & Company; European Commission: Environment SOLVING CHALLENGES IN KEY END MARKETS Avient Corporation 33 Transportation Lightweighting Recycle solutions VOC reduction Consumer Recycle solutions Lightweighting Carbon footprint Healthcare Carbon footprint Bio-based content Eco-conscious Packaging Recycle solutions Lightweighting Food waste reduction Sustainable Infrastructure Eco-conscious Carbon footprint Resource conservation HOW AVIENT INNOVATION ENABLES SUSTAINABLITY Avient Corporation 34 Solutions to increase recycled content and minimize plastic waste Solutions to reduce weight and energy consumption Solutions to preserve and protect natural resources & human life HOW WE ENABLE SUSTAINABILITY Renew Michael Garratt Senior Vice President, President of Color, Additives and Inks – EMEA Avient Corporation 35 RENEW Avient Corporation 36 KEY CUSTOMER CHALLENGES: • Meet Aggressive Sustainability Goals - While brand owners have made strong, public sustainability commitments – many are currently trailing far behind goals • Develop Strategies to Minimize Plastic Waste - Plastic waste remains a global priority with consumers and legislatures – forcing brand owners to implement tangible mitigation strategies • Increase Post Consumer Recycle (PCR) Utilization & Post Consumer Recycle Availability - Increasing the use of PCR is far more challenging than many companies had anticipated • Meet Legislation Requirements - Legislatures are drafting financial penalties for companies unable or unwilling to meet post-consumer recycled content targets Solutions to increase recycled content and minimize plastic waste PLASTICS ARE PART OF THE SOLUTION Avient Corporation 37 Source: Franklin Associates / American Chemistry Council PLASTIC ALTERNATIVE PACKAGING (GLASS + ALUMINUM + PAPER) 2x More energy 3x More greenhouse gas emissions 5x More waste 6x More waterWater Waste Emissions Energy BRAND OWNER PROGRESS AGAINST COMMITMENTS 39% 29% 37% 16% 25% 11% 11% 6% 19% 7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% Brand Owner 1 Brand Owner 2 Brand Owner 3 Brand Owner 4 Brand Owner 5 Brand Owner 6 Brand Owner 7 Brand Owner 8 Brand Owner 9 Brand Owner 10 Percent Recycled Plastic Used Progr ess through 2022 Gap t o r ea ch 2025 targets Source: Ellen MacArthur Foundation 2022 Avient Corporation 38 Color Management Maintaining Mechanical Properties Decontamination Mono-Material Construction Consistent Quality TOP 5 GAPS TO RECYCLE CONTENT UTILIZATION Avient Corporation 39 Avient Corporation 40 Food & Beverage Packaging 2022 Revenue: $43M Taste and Odor Management ColorMatrix™ AAnchor Scavenger • Improves recyclability • Reduces regulatory risk from migration issues 75% ACETALDEHYDE REDUCTION Recyclable Oxygen Barrier ColorMatrix™ Capture ™ Oxygen Scavenger • Protects recyclate - maintains clarity with no discoloration • Enables higher rPET content utilization rPET UTILIZATION Food & Beverage Packaging 2022 Revenue: $88M PCR Performance Additives ColorMatrix™ SmartHeat™ • Lowers energy use - CO2 Emissions • Reduces yellowing and thermal instability • Enables increased use of rPET • Minimal impact on part color 35% LOWER CARBON EMISSIONS THINNER WALLS Reduced Wall Thickness Packaging ColorMatrix™ Ultimate™UV Light Barrier Stabilizer Cesa™ Light Additives • Protects ingredients from UV degradation • Enables reduced wall thicknesses • No negative effect on recycling Increased Recycle Content ColorMatrix™ Process Aid and Toner for Recycled PET (rPET) • Improves ability to recycle PET • Enables higher percentages of recycled content • Provides superior aesthetics • Prevents degradation of physical properties ENHANCES RECYCLING Avient Corporation 41 Avient Corporation 42 Design for Recycling CycleWorks™ Center for Mechanical Recycling • Recycling trials and field testing • Solutions evaluation and screening • Customer collaboration EXPANDS PCR USAGE PCR Color Prediction Service • Enables use of lower-quality PCR • Predicts achievable colors • Increases PCR utilization rates • Helps brands to achieve PCR usage goals 85% CONSUMERS: CHOOSE BASED ON COLOR CycleWorks™ Center Milan, Italy Additives for Recycling 2022 Revenue: $50M Stabilization During Recycling Cesa™ A4R Additives for Recycling • Enables multi-loop recycling • Stabilizes recyclate during processing • Reduces discoloration, gels, and black spots 100% PCR UTILIZATION ENABLES Personal Care Packaging New Product Avient Corporation 43 Bio-Based Phone Case reSound™ OM BIO-based Thermoplastic Elastomers • Derived from non-fossil-based raw materials • Good property retention and UV resistance • Easily colorable 40% BIO-BASED CONTENT Avient Corporation 44 High PCR Content Razor reSound™ Recycled Thermoplastic Elastomers • Excellent processability • Easily colorable 62% RECYCLE CONTENT Consumer 2022 Revenue: $1M Carbon Footprint Analysis Carbon Footprint Mapping Service • Provides input metrics for independent brand carbon footprint calculations • Aligns with a defined ISO standard, certified by TUV Rhineland ENABLES CARBON AWARENESS Avient Corporation 45 Consumer 2022 Revenue: $1M Portable Power Station Nymax™ Recycled Nylon • Recycle content up to 60% • Excellent weathering performance • Reduces weight 60% RECYCLE CONTENT Swim Goggles reSound™ BIO Thermoplastic Elastomers • Easily colorable • Performs like traditional TPE 35 - 70% BIO-RENEWABLE CONTENT Avient Corporation 46 Consumer 2022 Revenue: $3M Off Road Vehicle Structural Components Nymax™ REC Reinforced Nylon • Replaces steel/aluminum • Excellent fatigue resistance INCORPORATES RECYCLE CONTENT CUSTOMER TESTIMONIALS Avient Corporation 47 “Avient’s bio-circular materials for our Biofuse 2.0 goggles are a real game changer that will set Speedo apart from the competition - and will support our aim of reducing environmental impact.”CAFE: Corporate Average Fuel Economy >50% Improvement REDUCE – TAKEAWAY Reducing Energy Consumption and Dependence on Fossil Fuels Drives Growth Projections Examples Covered Today 45% Other Applications 55% 2022PF $310M 38 46 CAFE1 Miles Per Gallon Proposed Requirements HOW WE ENABLE SUSTAINABILITY Preserve Woon Keat Moh Senior Vice President, President of Color, Additives and Inks – Americas and Asia Avient Corporation 61 PRESERVE Avient Corporation 62 KEY CUSTOMER CHALLENGES: • Preserving Key Natural Resources - Companies are being challenged to mitigate high environmental impact processes such as water-intensive textile dyeing or food spoilage • Incorporating Renewable Materials - Adoption of bio-based raw materials requires design and formulation expertise to overcome performance shortcomings of neat resins • Increasing Healthcare Regulations - Utilizing sustainable materials in healthcare applications requires considerable support in navigating complex regulatory requirements • Increasing Regulatory Compliance - Non-Intentionally Added Substances (NIAS) need to be controlled in sensitive applications • Enabling Faster and More Reliable Connectivity – Substantial investments in 5G infrastructure are required to unlock the potential of the Internet of Things Solutions to preserve and protect natural resources & human life Avient Corporation 63 Spin Dyed Precolor Textile Yarn Renol™ Spin Dyeing Colorants • Replaces water-based dye processes to reduce waste creation • Conserves water and energy 75% LESS WATER PROTECTIVE DENIM Dyneema® Workwear Solutions • Improves tear resistance 50-100% • More protective than competitive alternatives • Enables the amount of protective fiber to be reduced without sacrificing performance 600% IMPROVED ABRASION RESISTANCE Clothing & Textiles 2022 Revenue: $49M Avient Corporation 64 Low Cure Textile Inks Avient Specialty Inks™ Low Cure Inks • Decreases energy consumption • Reduces scrap due to heat-related defects SAVES ENERGY Clothing & Textiles 2022 Revenue: $40M BIO-BASED FORMULATIONS Water Based Textile Inks Zodiac™ Aquarius™ Specialty Inks • Incorporates bio-based materials • Non-formaldehyde solutions available • Reduces waste by enabling high open screen time Avient Corporation 65 Mosquito Netting Cesa™ Fiber Anti-Mosquito Additives • Helps control malaria • Protects consistently using a controlled release of insecticide • Expands access to healthcare breakthroughs to global communities ANNUAL NEW MALARIA CASES 200 Million Antimicrobial Protection Cesa™ WithStand™ Antimicrobial Additives • Reduces microbial / mold growth • Helps reduce odor, staining, discoloration • Excellent comfort and wearability • Chemical resistance - will not discolor or degrade REDUCES MICROBES Human Health & Safety 2022 Revenue: $5M Avient Corporation 66 Cut-Resistant Gloves Dyneema® Solutions • Incorporates bio-based materials • Reduces carbon emissions • Excellent wearability / comfort WORK INJURIES REDUCES Rescue Rope Dyneema® Solutions • Superior strength-to-weight ratio • High break load • Extraordinary reliability SAVES LIVES Human Health & Safety 2022 Revenue: $106M Body Armor Dyneema® Protective Solutions • Exceptional trauma protection • Excellent wearability LIGHTER THAN ARAMID FIBER 35% Avient Corporation 67 40% BIO-DERIVED Pharmaceutical Tubing Versaflex™ Healthcare Pharma Tubing Formulations NEU™ Specialty Engineered Materials • Facilitates incorporation of sustainable materials with healthcare device manufacturers • Eliminates vulcanization processes Medical 2022 Revenue: $40M NON-PHTHALATE Respiratory Conduit Versaflex™ Healthcare Corrugated Tubing Formulations • Non-Phthalate • ISO 10993 & USP Class VI compliant Avient Corporation 68 100% UP TO BIO-BASED CARRIER Medical Devices Mevopur™ Bio-Based Colorants • Minimizes risk through pre-testing • Provides vital regulatory compliance • Minimizes global supply chain risk with validated backup supply Continuous Glucose Monitoring and Auto Injectors Trilliant™ Healthcare Polymer Solutions • Impact performance • Chemical resistance ENABLES HOME CARE Medical 2022 Revenue: $16M Avient Corporation 69 Fiber Optic Cable and Jacketing Fiber-Line™ Optical Fiber Cable Components • Reduction in weight & energy usage • Thermal and abrasion resistant • Extends product life ENABLES CONNECTIVITY Cable Micromodules ECCOH™ Low Smoke Formulations • Non-halogen • Low smoke and toxicity SUPPORTS SUSTAINABLE INFRASTRUCTURE Base Station Components Edgetek™ Low-Density Formulations • Low density – lighter weight • Low warpage & thermal conductivity EXTENDS PRODUCT LIFE Antenna Components PREPERM™ Low Loss Dielectric Formulations • Replaces costly ceramics • Consistent and efficient antenna performance ENHANCES PERFORMANCE 5G Infrastructure 2022 Revenue: $39M Avient Corporation 70 “Nike has partnered with Avient extensively over the years because of their leadership in eco-friendly screen printing inks.”Per Carlsson, Manufacturing and Operations CUSTOMER TESTIMONIALS Avient Corporation 71 50 90 0 20 40 60 80 100 2022 2030 Medical Plastics Market Size PRESERVE – TAKEAWAY Protecting Human Life and Enabling Connectivity Drives Growth Projections Examples Covered Today 56% Other Applications 44% 2022 $525M (i n $B ill io ns ) 8% CAGR 34% CAGR 5G Infrastructure Market Size 12 92 0 10 20 30 40 50 60 70 80 90 100 2023 2024 2025 2026 2027 2028 2029 2030 (in $ B ill io ns ) Source: Grand View Research Source: Global Data Summary Jamie Beggs Senior Vice President and Chief Financial Officer Avient Corporation 72 OUR SUSTAINABILITY REPORT Avient Corporation 73 Avient Corporation 74 2030 SUSTAINABILITY GOALS Avient Corporation 75 PERFORMANCE AND RECOGNITION 1 2 5 ESG Ratings Performance ESG Awards and Certifications top 13% 94th percentile Avient Corporation 76 SUSTAINABILITY INNOVATION AWARDS Ultra-Low Carbon Footprint TPE Innovation Award, Finalist: Plastics Industry Association PCR Colorants + Additives Sustainable Packaging Innovation, Finalist: U.S.
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520-%2520BOAML%2520Basic%2520Materials%2520Conference%2520w%2520non-GAAP%252012%252011%25202014.pdf
In addition, operating income before special items and adjusted EPS are components of various PolyOne annual and long-term employee incentive plans Platform operating income mix percentage 2005Y* 2008Y* 2010Y* 2013Y Q3 2014 YTD Global Color, Additives and Inks $ 4.3 $ 28.1 $ 37.7 $ 104.0 $ 98.2 Global Specialty Engineered Materials 0.4 17.6 49.7 57.2 55.6 Designed Structures and Solutions - - - 33.4 37.2 Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 194.6 $ 191.0 Performance Products and Solutions 75.7 31.3 54.0 56.0 51.4 Distribution 19.5 28.1 42.0 63.3 53.2 Joint ventures 91.9 28.6 18.9 - - Corporate and eliminations (51.5) (425.1) (27.7) (82.4) (126.2) Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 231.5 $ 169.4 Less: Corporate operating expense 51.5 425.1 27.7 82.4 126.2 Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 313.9 $ 295.6 Specialty platform operating mix percentage 2% 34% 43% 62% 65% * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment. Appendix Q3 2014 Financial Highlights At a Glance�Global Color, Additives and Inks At a Glance�Global Specialty Engineered Materials At a Glance�Designed Structures and Solutions At a Glance�Performance Products and Solutions At a Glance�Distribution Plastics: Key to Future Sustainable Development Commitment to Operational Excellence Application Examples Slide Number 28 Anti-Counterfeiting Solutions 2012 Range Rover Evoque Interior Slide Number 31 Metal Replacement Solutions Next Generation Solar Charger High-Barrier Packaging Containers Aerospace Applications Non GAAP Rec - 11 5 14.pdf Sidoti & Company non-GAAP Rec
https://www.avient.com/sites/default/files/resources/POL%2520IR%2520Presentation%2520Jefferies%2520Conf%2520w%2520Non%2520GAAP%252008%252012%25202014.pdf
In addition, operating income before special items and adjusted EPS are components of various PolyOne annual and long-term employee incentive plans S&P 500 All time high of $43.34 July 1st, 2014 PolyOne Corporation Page 8 2006 2014 YTD 2015 “Where we were” “Where we are” Target 1) Operating Income % Specialty: Global Color, Additives & Inks 1.7% 15.2% 12 – 16% Global Specialty Engineered Materials 1.1% 11.8% 12 – 16% Designed Structures & Solutions -- 7.1% 8 – 10% Performance Products & Solutions 5.5% 8.0% 9 – 12% Distribution 2.6% 6.0% 6 – 7.5% 2) Specialty Platform % of Operating Income 6.0% 66% 65 – 75% 3) ROIC* 5.0% 9.9% 15% 4) Adjusted EPS Growth N/A 40% Double Digit Expansion Proof of Performance & 2015 Goals *ROIC is defined as TTM adjusted OI divided by the sum of average debt and equity over a 5 quarter period (Est. in 2012) PolyOne Corporation Page 9 Bridge to $2.50 Adjusted EPS by 2015 2015 EPS: $2.50 2013 EPS: $1.31 Continued Gross Margin Expansion Mergers & Acquisitions Spartech Accretion Incremental Share Buybacks Ongoing LSS Programs (50-100 bps/yr) Accelerated Innovation & Mix Improvement Several Levers to Drive Growth Mid Single Digit Revenue CAGR PolyOne Corporation Page 10 Innovation Drives Earnings Growth *Percentage of Specialty Platform revenue from products introduced in last five years $20 $53 2006 2013 Research & Development Spending ($ millions) Specialty Platform Vitality Index Progression* 14.3% 30.7% 2006 2013 Specialty Platform Gross Margin % 19.5% 43.0% 2006 2013 Specialty Vitality Index Target ≥ 35% PolyOne Corporation Page 11 Prototype Frame Opportunity Scale-up & Test Market Build Business Case Commercial Launch Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 4 11 5 10 6 9 3 4 2 15 9 1 10 4 Breakthrough Platform Derivative A Rich Pipeline of Opportunity* Number of Projects 25 14 19 17 18 93 Addressable Market ($ millions) TBD TBD $800 $450 $450 $1,700 *Pipeline as of 2014年5月29日 as presented during our Innovation Day PolyOne Corporation Page 12 Healthcare Consumer Packaging and Additive Technology Transportation Unique and Innovative Solutions https://www.dropbox.com/sh/dwe4t8aacvhb8ui/uD3p_bdglP/Presentation revise pics/GLS Beverage can closure XO 2.jpg https://www.dropbox.com/sh/dwe4t8aacvhb8ui/-YgkycKypw/Anti-Counterfeiting release & images/GN1979.JPG PolyOne Corporation Page 13 Megatrends Aligned with Key End Markets Decreasing Dependence on Fossil Fuels Protecting the Environment Improving Health and Wellness Megatrend End Markets Globalizing and Localizing Health & Wellness Transportation Packaging Consumer PolyOne Corporation Page 14 60% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2014 Pension Funding** As of 2014年6月30日 Debt Maturities & Pension Funding – 6/30/14 Net Debt / EBITDA* = 1.8x $48 $317 $600 $0 $100 $200 $300 $400 $500 $600 $700 $800 2015 2020 2023 Debt Maturities As of 2014年6月30日 ($ millions) Coupon Rates: 7.500% 7.375% 5.250% ** includes US-qualified pension plans only *TTM 6/30/2014 PolyOne Corporation Page 15 Free Cash Flow and Strong Balance Sheet Fund Investment / Shareholder Return $0.16 $0.20 $0.24 $0.32 $0.10 $0.20 $0.30 $0.40 2011 2012 2013 2014 Annual Dividend Expanding our sales, marketing, and technical capabilities Targets that expand our: • Specialty offerings • End market presence • Geographic footprint • Operating Margin Synergy opportunities Adjacent material solutions Repurchased 1.8 million shares in Q2 2014 Repurchased 8.2 million shares since early 2013 11.8 million shares are available for repurchase under the current authorization Organic Growth Acquisitions Share Repurchases Dividends Investing in operational and LSS initiatives (including synergy capture) Manufacturing alignment PolyOne Corporation Page 16 PolyOne Core Values Innovation Collaboration Excellence PolyOne Corporation Page 17 The New PolyOne: A Specialty Growth Company Why Invest In PolyOne? Platform operating income mix percentage 2005Y* 2008Y* 2010Y* 2013Y 2014 Q2 Global Color, Additives and Inks $ 4.3 $ 28.1 $ 37.7 $ 104.0 $ 68.1 Global Specialty Engineered Materials 0.4 17.6 49.7 57.2 37.2 Designed Structures and Solutions - - - 33.4 24.1 Specialty Platform $ 4.7 $ 45.7 $ 87.4 $ 194.6 $ 129.4 Performance Products and Solutions 75.7 31.3 54.0 56.0 33.6 Distribution 19.5 28.1 42.0 63.3 34.5 Joint ventures 91.9 28.6 18.9 - - Corporate and eliminations (51.5) (425.1) (27.7) (82.4) (91.7) Operating income (loss) GAAP $ 140.3 $ (291.4) $ 174.6 $ 231.5 $ 105.8 Less: Corporate operating expense 51.5 425.1 27.7 82.4 91.7 Operating income excluding Corporate $ 191.8 $ 133.7 $ 202.3 $ 313.9 $ 197.5 Specialty platform operating mix percentage 2% 34% 43% 62% 66% * Historical results include the Resin and Specialty Coatings businesses within the Performance Products and Solutions segment.